CALGARY—Enbridge Inc. has announced a 33 per cent increase to its next quarterly common share dividend as part of a restructuring plan that will transfer part of its business to an affiliated income fund.
The Calgary-based pipeline company said the dividend will increase to 46.5 cents per share with the next dividend payable on March 1, 2015.
Enbridge said it plans to transfer its Canadian Liquids Pipelines business—valued at about $17 billion—to its Canadian affiliate, Enbridge Income Fund under the planned restructuring.
Enbridge said these moves are designed to enhance shareholder value while providing more funding for its capital program and asset acquisitions.
“Our plan to transfer the Canadian Liquids Pipelines business to Enbridge Income Fund comes after an extensive review of the potential to further enhance the value of our $44 billion growth program and lower the cost of funding for that program and for new investment opportunities,” said president and CEO Al Monaco.
“We believe that the drop down of our Canadian Liquids Pipelines business into the Fund will transform it into a high growth vehicle and be beneficial for shareholders of both Enbridge and Enbridge Income Fund Holdings.”
Enbridge’s board of directors also approved a revised dividend payout policy range of 75 per cent to 85 per cent of adjusted earnings. The previous payout policy range was 60 per cent to 70 per cent.